Synopsys Commits to $300M Accelerated Share Repurchase Agreement
June 19, 2023
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Synopsys ($NASDAQ:SNPS), Inc. is a technology company headquartered in Mountain View, California and provides innovative products and services that enable organizations to develop, validate, and verify advanced semiconductor chips and electronic systems. Recently, it has announced a $300M accelerated share repurchase agreement. Under the terms of the agreement, Synopsys will repurchase up to $300M of its common stock from an unaffiliated third-party financial institution. This reinforces the company’s commitment to enhance shareholder returns and its ability to manage its capital structure going forward.
The company also intends to offset the potential dilutive effect of issuing equity for compensation expenses through repurchasing shares in the open market or through private transactions. Synopsys’ strong balance sheet combined with its accelerated share repurchase agreement will help the company prioritize new investments while continuing to return value to shareholders. This is a win-win situation for both parties involved in the agreement and reinforces Synopsys’ commitment to delivering long-term value to its shareholders.
Price History
On Thursday, Synopsys Inc. (SYNOPSYS) announced that it had entered into a $300 million accelerated share repurchase agreement. This news caused the share price of the company to increase significantly, rising by 9.8% from a prior closing price of $395.4 to $434.2. The stock opened at $410.0 that same day. This new repurchase agreement demonstrates Synopsys’ commitment to their shareholders and confidence in their own future value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Synopsys. More…
| Total Revenues | Net Income | Net Margin |
| 5.29k | 920.57 | 18.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Synopsys. More…
| Operations | Investing | Financing |
| 1.65k | -514.32 | -1.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Synopsys. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.79k | 3.92k | 36.99 |
Key Ratios Snapshot
Some of the financial key ratios for Synopsys are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | 24.3% | 19.3% |
| FCF Margin | ROE | ROA |
| 28.1% | 11.1% | 6.5% |
Analysis
At GoodWhale, we help investors make more informed decisions about their investments. Our analysis includes examining the company’s financial and business risk rating. Based on our assessment, SYNOPSYS is a low risk investment when it comes to both the financial and business aspects. We have identified areas with potential risks that you should consider when making your decision. If you’d like to gain access to our analysis, we invite you to register with us and check out the insights we have to offer. We are confident that our analysis will help you make an educated decision about whether or not to invest in SYNOPSYS. Synopsys_Commits_to_300M_Accelerated_Share_Repurchase_Agreement”>More…
Peers
Its main competitors are Cadence Design Systems Inc, Goodpatch Inc, and Zuken Elmic Inc.
– Cadence Design Systems Inc ($NASDAQ:CDNS)
Cadence Design Systems is a software company that provides tools that help engineers design semiconductors and other electronic products. The company’s market cap is $43.36 billion, and its return on equity is 22.8%. Cadence’s products are used by engineers to design and verify the manufacturing of semiconductors, computer chips, and other electronic products.
– Goodpatch Inc ($TSE:7351)
Patch Inc is a technology company that provides software development and IT services. The company has a market cap of 5.5 billion as of 2022 and a return on equity of 8.49%. Patch Inc offers a wide range of services including web and mobile application development, cloud computing, big data, and artificial intelligence. The company has a strong focus on helping its clients grow their businesses and expand their reach. Patch Inc has a team of experienced and skilled professionals who are dedicated to providing the best possible services to their clients.
– Zuken Elmic Inc ($TSE:4770)
Zuken Elmic Inc. is a Japanese electronics company that specializes in electronic design automation (EDA) software. The company has a market capitalization of 2 billion as of 2022 and a return on equity of 13.95%. The company’s products are used by electronics manufacturers to design and test printed circuit boards (PCBs). Zuken Elmic’s products are used by some of the world’s largest electronics companies, such as Samsung, LG, and Sony.
Summary
Synopsys, Inc. recently announced a $300M accelerated share repurchase agreement (ASR), a move that has been well received by investors. The stock price moved up the same day as the announcement, reflecting the positive sentiment of the market. Currently, Synopsys is well-positioned in the Semiconductor Design Automation market, and its long track record of innovation and steady cash flow make it an attractive investment.
Analysts expect that the ASR will help advance the company’s growth opportunities and increase its earnings potential. Investors should closely watch how Synopsys performs in the coming months to get an indication of the impact of the ASR.
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